Naira Appreciates as Dollar Supply Spikes by 147.66%
The Nigerian naira experienced a slight recovery on Thursday, buoyed by a sharp increase in dollar supply within the official market. According to FMDQ data, the naira strengthened by 0.60%, closing at N1,659.26 per US dollar, compared to N1,669.15 just two days earlier. This increase follows a significant depreciation earlier in the week, when the naira had fallen by 8.25% in just a day.
Dollar supply surged by 147.66% on Thursday, with FX turnover rising from $181.86 million to $450.39 million, marking the largest single-day volume since May 2024. This surge in liquidity provided temporary relief to the naira, though the currency remains under pressure.
In related news, the Central Bank of Nigeria (CBN) announced the introduction of the Electronic Foreign Exchange Matching System, which aims to enhance transparency and reduce market distortions. The new system is scheduled to begin operations on December 1, 2024.
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